Here is the first tip - don't take forex trading advice from someone who hasn't traded forex.
Ironically there are a lot of 'information peddlers' out there who are the Worlds greatest experts but have never traded a day in their life. They've never traded interbank (they wouldn't know the a spot from a Eurodollar from a collar), nor have they traded personal account. I've met quite a few of these individuals on forums. The best advice your going to get is from someone in the market, or who has been in the market!
Unless you have traded you will have no idea what it feels like to trade - the intense concentration when you have a position, especially a bad one that you are riding or how exhilarating it is when you make consistent profits! Even better is the feeling when you have ridden a bad position and it's come good, even when most bad positions are better being cut (it takes experience and judgment to be successful in this type of situation).
So when you are looking for advice make sure the person giving the advice has a history of trading and of successful trading whether it's interbank or personal account.
Tip 2
Don't take advice from someone who's never lost money on forex - take it from me such an animal doesn't exist. Traders love to boast of their successes but if you look behind the scenes they usually have made even bigger losses (it's an ego thing). You are much better getting advice from someone who's been round the block and back as the best lessons are learnt from our mistakes not our successes.
When I was hiring traders (in my interbank trading days) I always looked for consistency. I always knew that consistent profits equalled bonuses for all of us.
Tip 3
Learn before You Earn. You cannot even try forex trading unless you absorb as much information as possible. You not only have to learn the jargon and understand micro economics, to some extent, but you also have to get into the traders frame of mind.
A useful place to start is join some forums as this is an excellent way to ask traders what their thoughts are about markets, currencies and the market sentiment. It's also a great place to hang out when you are practice trading. I know of a few people who run trading clubs but these tend to be amongst people who know and trust each other.
Tip 4
Get a practice trading account. Most good brokerage firms provide one. Don't sign up to a broker just to get a dummy account. Do your homework first. It's often a good idea to ask other forum members about their experience - as in most things in life - if you get a good referral from someone who has used the facility then that is always a safer way to go!
Tip 5
There's a bit of an overlap here with tip 4. It is so important to get a good broker and develop a good trading relationship. You will find that there are some specialist brokers that concentrate on certain types of trading. You will find that most brokers frown upon scalping and will shut down your account if that is the type of trading that you adopt, although there are a few specialist brokers out there that will cater for that type of trading. Most brokers prefer day traders (traders that open up positions for no shorter than 30 minutes and usually square off before the end of their trading day).
Ironically there are a lot of 'information peddlers' out there who are the Worlds greatest experts but have never traded a day in their life. They've never traded interbank (they wouldn't know the a spot from a Eurodollar from a collar), nor have they traded personal account. I've met quite a few of these individuals on forums. The best advice your going to get is from someone in the market, or who has been in the market!
Unless you have traded you will have no idea what it feels like to trade - the intense concentration when you have a position, especially a bad one that you are riding or how exhilarating it is when you make consistent profits! Even better is the feeling when you have ridden a bad position and it's come good, even when most bad positions are better being cut (it takes experience and judgment to be successful in this type of situation).
So when you are looking for advice make sure the person giving the advice has a history of trading and of successful trading whether it's interbank or personal account.
Tip 2
Don't take advice from someone who's never lost money on forex - take it from me such an animal doesn't exist. Traders love to boast of their successes but if you look behind the scenes they usually have made even bigger losses (it's an ego thing). You are much better getting advice from someone who's been round the block and back as the best lessons are learnt from our mistakes not our successes.
When I was hiring traders (in my interbank trading days) I always looked for consistency. I always knew that consistent profits equalled bonuses for all of us.
Tip 3
Learn before You Earn. You cannot even try forex trading unless you absorb as much information as possible. You not only have to learn the jargon and understand micro economics, to some extent, but you also have to get into the traders frame of mind.
A useful place to start is join some forums as this is an excellent way to ask traders what their thoughts are about markets, currencies and the market sentiment. It's also a great place to hang out when you are practice trading. I know of a few people who run trading clubs but these tend to be amongst people who know and trust each other.
Tip 4
Get a practice trading account. Most good brokerage firms provide one. Don't sign up to a broker just to get a dummy account. Do your homework first. It's often a good idea to ask other forum members about their experience - as in most things in life - if you get a good referral from someone who has used the facility then that is always a safer way to go!
Tip 5
There's a bit of an overlap here with tip 4. It is so important to get a good broker and develop a good trading relationship. You will find that there are some specialist brokers that concentrate on certain types of trading. You will find that most brokers frown upon scalping and will shut down your account if that is the type of trading that you adopt, although there are a few specialist brokers out there that will cater for that type of trading. Most brokers prefer day traders (traders that open up positions for no shorter than 30 minutes and usually square off before the end of their trading day).
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